Rising energy costs are a growing concern for businesses across all industries. Whether you run a business across all industries or not, keeping energy expenses under control is critical for maintaining profitability. An Energy procurement strategy is the most effective way to manage these costs. By making informed decisions about how and when you buy energy, you can reduce costs, improve budgeting accuracy and minimise risks. 

1. Understand Your Energy Needs

Before diving into procurement, it’s essential to analyse your current energy consumption. Reviewing past bills and usage patterns can help you identify trends, peak demand periods, and potential inefficiencies. If your business operates in a sector with fluctuating energy needs, a flexible procurement approach might be more cost-effective than a fixed contract. 

2. Choose the Right Procurement Strategy

Businesses have several options for energy procurement, and the right strategy depends on your risk appetite and budget. 

Fixed Procurement – This involves locking in a set price for energy over a specific period, providing budget certainty and protection against market volatility. It’s a great option for businesses that prefer stability in their energy costs. 

Flexible Procurement – This approach allows you to purchase energy in smaller increments rather than all at once, taking advantage of market dips. It works well for businesses with a higher risk tolerance and the ability to monitor market trends. 

Group Purchasing (Energy Basket) – Some businesses join forces with others to purchase energy collectively, securing better rates through bulk buying power. This strategy can be particularly beneficial for SMEs looking to reduce costs.  

3. Time Your Purchases Wisely

Energy markets are volatile, and timing your procurement can significantly affect costs. An energy consultant can help you monitor price fluctuations and secure contracts when rates are lower. Some key factors influencing energy prices include: 

• Seasonal demand  
• Supply chain disruptions 
• Regulatory changes 
• Global energy market trends 

4. Consider Renewable Energy Options

With sustainability becoming a priority, businesses are increasingly exploring renewable energy procurement. Renewable Energy Guarantees of Origin (REGOs) and Power Purchase Agreements (PPAs) allow companies to source electricity from green energy suppliers, often at competitive rates. Switching to renewables reduces long-term costs and improves corporate sustainability credentials.  

5. Partner with an Energy Procurement Expert

Navigating the energy market can be complex, and having an expert on your side can make a big difference. Energy consultants analyse market conditions, negotiate better deals, and ensure your contracts align with your business needs. CES specialises in helping businesses develop tailored procurement strategies through fixed, flexible, group purchasing (energy basket) or renewable energy contracts. 

6. Regularly Review Your Contracts

Energy procurement isn’t a one-time task. Market conditions change, and so do your business needs. Reviewing your contracts regularly ensures you’re always on the best possible deal.  

Energy procurement is more than finding the lowest price—it’s about making strategic decisions aligning with your business goals. Understanding your energy usage, choosing the right procurement model, and timing your purchases can reduce costs and improve efficiency. 

 At CES, we help businesses navigate the complexities of energy procurement, ensuring they get the best value while managing risks. If you’re looking for expert guidance, contact our team at [email protected] or call us on 0203 157 1020 today for a consultation.